Economic Fears Spike As Gas, Food Prices Rise

Deep pessimism about future economic growth is weighing on Americans as they hunker down from the effects of higher gas and food prices and fear that those prices could remain elevated for years, a poll from CNBC has found.

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Deep pessimism about future economic growth is weighing on Americans as they hunker down from the effects of higher gas and food prices and fear that those prices could remain elevated for years, a poll from CNBC has found.

Results of the survey reveals that Americans’ attitudes toward home ownership and expectations for housing prices are both deteriorating sharply. An astonishing one out of every two Americans knows someone who is being foreclosed upon or facing the threat of foreclosure, writes Steve Liesman, CNBC senior economics reporter.

The survey of 800 Americans, from across the nation, income groups and ages, finds the percentage of Americans who believe the economy will get worse in the next year spiking to 37%, a 15-point gain from December. It’s now just five points below the all-time high in the series of 43% in June 2008, which came in the midst of a surge in gasoline prices.

Those negative attitudes were registered just before the disaster in Japan and, if anything, could have worsened since then.